THE CASE FOR MANAGED SERVICES AND MARKET LANDSCAPE

Transcription

1 THE CASE FOR MANAGED SERVICES AND MARKET LANDSCAPE BILL MCLAUGHLIN Chief Technology Officer Vice President, Managed Services

2 The Case for Managed Services Question... How many offer: Managed Print Services Document Management Services Managed IT Services

3 The Case for Managed Services Agenda Managed Services Market Landscape 2. Managed Services Opportunities 3. Transforming your Business

4 Stats and Trends Managed Services Market Landscape % of solution providers report that Managed Services accounts for more than three-quarters of their revenue Two thirds of solution providers will offer some form of managed service before end of 2013 CompTIA: Trends in Managed Services Operations 2012 study

5 Stats and Trends Managed Services Market Landscape Top Managed Services Offered Remote Monitoring Managed Storage, Backup, Disaster Recovery Help Desks Patch Management Managed Security Services Software License Management NOC (Network Operations Center) Services Mobile Device Management Warrany Management Hardware as a Service Managed Database Services Managed Print Services Managed Video/Telepresence Managed Video Surveillance 51.3% 35.0% 29.1% 19.5% 11.8% 96.6% 93.6% 93.0% 91.4% 91.2% 76.5% 73.3% 72.7% 70.9% 2012 Top 100 MSP Report

6 Stats and Trends Managed Services Market Landscape Top Cloud Services Offered Hosted Cloud Storage Virtual Servers in the Cloud Software as a Service Website Hosting Infrastructure as a Service Virtual Desktop Infrastructure Cloud Security Hosted VoIP/Unified Communications Platform as a Service Hosted CRM 20.7% 31.2% 39.8% 37.4% 53.8% 48.9% 59.6% 57.7% 67.7% 76.1% 74.1% blank Series Top 100 MSP Report

7 Stats and Trends Managed Services Market Landscape Target Customer Size 1-20 employees 54.1% employees employees 65.6% 75.8% employees 43.4% employees 14.1% 1001 or more employees 10.0% blank Series Top 100 MSP Report

8 Stats and Trends Managed Services Market Landscape Vertical Markets Focus No Vertical Market Focus Health Care Banking, Financial Services Legal Accounting Not for Profit/Associations 33.8% 43.6% 39.7% 40.1% 31.6% 27.9% Insurance 25.5% blank Series Top 100 MSP Report

9 Stats and Trends Managed Services Market Landscape According to IDC: IT spend in 2013 $ 2.1 trillion Mobile management software revenue $ 444.6M 444.6M in 2011 $ 1.8 billion by 2016 Mobility to grow 20 % Generate 20 % of all IT sales

10 Stats and Trends Managed Services Market Landscape 7 in 10 companies contract with a Managed Services Provider 46 % trimmed their Annual IT expenditures by 25 Only 29 % of companies handle all IT on their own % during recession 62 % of them plan to increase IT Spend on Managed Services Source: CompTIA

11 Stats and Trends Managed Services Market Landscape Rapid adoption of cloud and virtualization infrastructure 62 % of SMBs use cloud services up 35 % year-over-year % of SMBs have adopted virtualization technology Spiceworks Inc.: State of SMB IT study

12 Stats and Trends Managed Services Market Landscape SMB IT budgets remain the same Operate on shoestring budgets, wear multiple hats and lack dedicated IT staff and expertise 74 % of firms didn t plan on hiring during 2012 Don t have resources or manpower to invest in complicated and sophisticated infrastructure Little choice but to adopt mobile, cloud and social networking platforms to stay competitive and relevant in marketplace Spiceworks Inc.: State of SMB IT study

13 Stats and Trends Managed Services Market Landscape 72 % of SMBs want vendors to simplify technology 64 % saw increase in technology pain points over the last 3 years 61 % would ignore incoming technology if they were too complicated even if it would help their businesses SMBs want unbiased advice on technology that is easy to understand and simple to adopt survey

14 Stats and Trends Managed Services Market Landscape Mobile Impacts Printer Market People with smartphones and mobile devices discovered they could store PDF and s on Kindle book readers Printing less Reading more

15 OEM Transformations Managed Services Market Landscape OEM M&A make the transition from a hardware-oriented model to a services model Rick Taylor COO (acquired 12 regional solution providers to date)

16 OEM Transformations Managed Services Market Landscape OEM M&A transition from a copier company to a document-services company Ursula Burns CEO

17 OEM Transformations Managed Services Market Landscape

18 OEM Transformations Managed Services Market Landscape OEM transformations similar to: HP s acquisition of EDS IBM s purchase PricewaterhouseCoopers Dell buying Perot Systems Printer vendors turning to Managed Services channel to ignite Managed Print Services Expanding Capabilities, not Enhancing Legacies

19 OEM Transformations Managed Services Market Landscape Transformation is inevitable Digital and mobile work and personal lives are increasingly part of the cloud era Printers are no longer a license to print profits Sustainable Monthly Recurring Revenue business model

20 Tape Backup MANAGED SERVICES OPPORTUNITIES

21 Tape Backup Managed Services Opportunities Copier and Equipment Vendor Challenges Commoditization single greatest threat to profitability, market share and revenues Networked business environments and MFP replacing standalone copiers, printers and faxes Office market is shrinking fewer workers and less activity

22 Tape Backup Managed Services Opportunities Copier and Equipment Vendor Challenges Current business tied to cost-cutting measures (MPS) Use of lower cost A4 machines Overall paper use reduction initiatives Green Sustainability Transition of paper-to-digital business processes

23 Tape Backup Managed Services Opportunities Technology Driven Trends Customers need help with IT infrastructure Looking for service providers they trust to deliver an integrated suite of services Demand lower cost Help mitigate compliance and security risks

24 Tape Backup Managed Services Opportunities Challenges not insurmountable Key to differentiation and higher margins is to leverage the very trends that threaten copier and office products Managed services model offers copier business immediate path to higher-value, higher-margin services Natural complement to existing core product offering Evolve or face further margin erosion & commoditization

25 Tape Backup Managed Services Opportunities Proven advantages of MSP model Rapidly diversify value proposition and service offerings Generate new sources of recurring revenue Increase value to existing and new customers Differentiate business in an increasingly commoditized marketplace Gain competitive advantage from lower customer acquisition costs Leverage loyalty and equity in existing customer relationships

26 Managed Services Opportunities Why would a dealer consider the IT Services market? As MPS continues to grow. Dealers are living on their customer s local networks So are VARS who provide network, router, workstation and peripheral support When VARS attach printers and MFPs to the network, MPS dealer loses part of the network

27 Tape Backup Managed Services Opportunities Perfect solution and transition opportunity Managed services is an innovative business and service delivery model that can revolutionize how a copier business does business New recurring revenue streams Improved margins Stronger customer relationships Predictable business focused services Optimized operations Managed risk Deliver measurable business value

28 Tape Backup TRANSFORMING YOUR BUSINESS

29 Opportunity with many challenges Transforming your Business Transforming to a MSP is no easy task Lack understanding on DATA side of business Lack trained resources and IT expertise Upfront cost to hire DATA technician Risk of going into an unknown market Uncertainty on how to productize offerings Lack experience selling services

30 Transforming your Business Copier dealer has important assets to leverage Strong established sales force Trusted relationships with SMB clients

31 Key requirements of a MSP program Transforming your Business Technology Remote Monitoring and Management Automation platform Endpoint security management Service automation Desktop management Reporting

32 Key requirements of a MSP program Transforming your Business Support Services NOC support Help desk

33 Key requirements of a MSP program Transforming your Business Business services Business consulting services Self-guided training Customizable sales and marketing collateral Marketing agency that understands copier business and managed services business

34 Key requirements of a MSP program Transforming your Business Knowledge Management Portal On-demand access to courses and other MSPs Best practices for acquiring new customers

35 7 steps to IT Managed Services Transforming your Business Step 1: Ask Your Customers Review existing performance metrics for new services clues Customer reviews Sales force Help desk Ask customers what they need

36 7 steps to IT Managed Services Transforming your Business Step 2: Invest in People, Process Expertise to support services Bench strength 24/7 commitment Continuous training critical Credentialing staff CompTIA MSP Partners Trustmark

37 7 steps to IT Managed Services Transforming your Business Step 3: Partner to Extend Services Expand without hiring and training costs Key questions to ask Can third-party service be rebranded? Can MSP set pricing and margins Who handles end-customer billing? What SLA is offered to MSP and end-customer?

38 7 steps to IT Managed Services Managed Services Opportunities Step 4: Rethink Pricing Most MSPs charge for on a per-device basis Shift to flat fee per user pricing $ per user/month Per device pricing leads to price wars Difficulty to quantify value for some services tablets, smart phones Less about physical devices More about virtual services / end-user consumption

39 7 steps to IT Managed Services Managed Services Opportunities Step 5: Minimize Surprises Unexpected costs upset customers/budgets Also trim profit margins Bring customer s network into compliance day one Separate on-boarding fees from ongoing fees Clearly define service level agreements

40 7 steps to IT Managed Services Managed Services Opportunities Step 6: Make your Services Stick Cultivate stickiness with clients Intertwine in customer s business as much as possible Consider Vendor Management services Develop a relationship with whole business, not just IT Uncover customer s business challenge(s)

41 7 steps to IT Managed Services Transforming your Business Step 7: Make the Commitment Commit to necessary investment Develop sales/marketing plan that targets growth Build out infrastructure to ensure capacity Create on-boarding process

42 Transforming your Business Find the right Partners The right partners can provide you with Lower service delivery costs Increased revenue Highly-differentiated service offering Faster, less costly time to market Increased business valuation

43 Tape Backup Transforming your Business The Atlantic Story

44 Tape Backup Transforming your Business Simplified our message Office Technologies Managed Services Professional Services

45 Tape Backup Transforming your Business New website Simplified our story Services Slideshow Videos Explaining Services Blog Social Media links Search Engine Optimized

46 Tape Backup Transforming your Business Continuity in our message End to End Solution Provider Do you know how your MFP impacts your business? CAN YOUR SYSTEMS HANDLE IT? Network Servers Storage Onsite Backup Remote Backup Disaster Recovery Cloud Mobility

47 Tape Backup Transforming your Business Leverage hardware capabilities Solutions Beyond Your MFP Workflow Software Solutions for Efficiency & Productivity SCANNING & CONVERSION ADVANCED PRINTING SOLUTIONS RULES BASED PRINTING & COST RECOVERY Document Management Reduce Paper Go Green Secure Storage Fast Retrieval Simplified Workflows Compliance Safeguards Simplified Collaboration Mobile Printing Cloud Printing Mainframe Printing Secure Printing User Authentication Electronic Forms JAVA / Web Services SDK Cost Reduction Expense Visibility Cost Containment User Restrictions Print Job Routing Charge-Back Capabilities Simplified Reporting

48 Tape Backup Transforming your Business Control the network Managed IT Services Why do companies need Managed IT Services? Risk mitigation Maximize end user Productivity Expense Control Compliment in-house Resources On-demand Access to Higher Levels of Support Proactive vs. Reactive Response Focus on Mission Critical Initiatives

49 Tape Backup Transforming your Business Capture printers & margins Managed Print Services 90% of Print Costs are not easily identified Hard Costs Print Devices Consumables Maintenance Hidden Costs Infrastructure& Procurement Help Desk Support Network Administration Admin and Labor Costs Managing Documents Outages Productivity Loss

50 Tape Backup Transforming your Business Single Vendor resource Professional Services If your support team is spread too thin or lacking necessary skills, your business may be at risk! Our Expertise includes: IT Consulting Virtualization Services Backup & Disaster Recovery Microsoft Exchange Server / Mobile Devices Microsoft Windows Server Network Solutions Security Solutions Staff Augmentation Hardware & Software Procurement Asset Management & Full lifecycle Management

51 Tape Backup Transforming your Business Digital conversion Document Management Solutions Why Document Management Makes Sense Real time access to critical company information Secure, centralize and locate your files electronically Flexible Document Retrieval Eliminate piles of paper and automate manual processes Reclaim space once used for file cabinets and storage boxes Reduce Storage and Operational Costs No More Lost Files!!

52 Tape Backup Transforming your Business Mitigate risk Records & Information Management How Can Atlantic Help? Records Retention Schedules Records Management Policies Vital Records Protection Programs Records Destruction Programs Records Management Training Disaster Recovery and Business Continuity Programs

53 Tape Backup Transforming your Business

54 Tape Backup Transforming your Business